Question

Mention any four most common environmental barriers which an entrepreneur may face while running his/her venture.

Hint:

Environmental barriers are external challenges like policy, economy, and technology that affect businesses.

Answer 1

Entrepreneurs often face various challenges from the external environment that hinder the smooth operation of their ventures.
These environmental barriers are outside their direct control and may affect decision-making, resource allocation, and growth.
Four common environmental barriers include:
(i) Government Policies: Frequent changes in regulations, taxation, or licensing laws can disrupt business operations and create compliance burdens.
(ii) Economic Instability: Inflation, recession, or fluctuating interest rates can impact demand, investment, and access to capital.
(iii) Market Competition: High competition in the industry may force entrepreneurs to reduce prices or increase promotional efforts, reducing profitability.
(iv) Technological Changes: Rapid innovation and evolving technology may render existing products or processes obsolete, requiring continuous adaptation.
These barriers require entrepreneurs to be agile, informed, and proactive in developing contingency strategies.